The S&P 500 index has hit a record high of 7,000 points for the first time, but Bitcoin is lagging behind.
U.S. stocks are supported by strong performance from AI, big tech companies and expectations for monetary easing. Bitcoin is also rising, but unlike stocks and gold, which are hitting new highs, the rise is gradual. This gap begs the question: Is there a reason for Bitcoin’s lag, or is it preparing for a delayed surge?
Important points
The S&P 500 hit a record high of 7,000, driven by AI-driven tech stocks and strong earnings.
Gold soared above $5,200 as investors hedged amid rising stock prices.
Bitcoin rose slowly, rising 1.67%, indicating stabilization rather than a breakout.
Market leadership favors stocks and gold. Inflow into Bitcoin may be delayed.
Relentless U.S. stock rally driven by AI and profits
The S&P 500 index’s rise to 7,000 reflects how quickly confidence in the U.S. market has returned. Growth has accelerated in recent years, taking three years to reach 4,000 to 5,000, less than a year to reach 6,000, and just a few months to reach 7,000.
Tech stocks are leading the way. AI companies now account for nearly half of the index, with Nvidia, Microsoft, Alphabet and chip makers benefiting from rising demand for data centers and AI infrastructure.
Earnings expectations are fueling optimism. Analysts expect S&P 500 profits to rise more than 15% in 2026, with tech profits growing nearly three times faster than the overall market.
Gold breaks out as Bitcoin lags
While stocks hit record levels, gold has soared above $5,200 an ounce, an unusual move that parallels the rise in stock prices. Gold’s rally reflects continued defense demand as central banks buy it and investors hedge long-term risks while remaining a growth asset.
Bitcoin is following a different path. BTC rebounded towards the $90,000 level earlier today, but as of this writing it has settled down slightly, continuing to rise by 1.67% on the day.
In previous cycles, Bitcoin’s price has often led during periods of renewed risk appetite. Leadership this time belongs to traditional assets.
Why Bitcoin is lagging at the moment
Several factors explain why Bitcoin is playing catch-up rather than rushing ahead.
First, liquidity remains tighter than in previous bull cycles. Although interest rate cuts are expected in the coming years, the Fed remains cautious and risk capital is not flowing indiscriminately.
Second, Bitcoin’s role as a high-beta asset works against it if investors prefer earnings visibility and balance sheet strength.
Third, gold absorbs much of the “financial hedging” demand that Bitcoin typically attracts. With geopolitical risks, currency weakness and central bank buying in focus, gold looks like a safer hedge right now.
Historically, Bitcoin has tended to lag at the beginning of risk cycles and then accelerate as liquidity improves. Inflows into Bitcoin could be delayed if expectations for interest rate cuts rise and funds move out of crowded stocks.
For now, its poor performance is not necessarily a sign of weakness. This reflects where investors feel safest to take risks today.
